In the House of Commons on Monday Mr. Asquith answered
the highly important protest against the Budget by a number of London merchants, bankers, and business men. The protest, which was published in the papers of last Saturday, was signed by many of the best-known English bankers, some of whom are supporters of the Government. It expressed, " irrespective of party," the opinion that many of the finance proposals before Parliament are open to "grave objection." The signatories confine their comments, however, to those questions upon which they can speak from experience. Objection is taken to the alteration of the law as regards the Old Sinking Fund. The principle under which the surplus of each year is automatically applied to the reduction of Debt is said to be "the only sound one." If the law is altered, the Government will inevitably be tempted to underestimate revenue and to overestimate expenditure in order that they may have surpluses to spend on objects for which money would not have been specially voted. The signatories are further alarmed at the disproportion of the burden placed on a small class of the community. They believe that the great increase of the Death-duties and of the Income-tax, coupled with the super-tax, will seriously injure commerce. In conclusion, they urge that if capital is to be regarded as no longer indisputably safe in this country, it may be reduced below the point necessary for trade. If capital is reduced, employment will be diminished and wages lowered.
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